<p>Taking yet another stride toward globalizing the e-CNY currency, China’s central bank has unveiled a pilot program in collaboration with its Singaporean counterpart, enabling tourists from both countries to use the digital yuan for transactions when traveling.</p><h2 id="header-0">Series of initiatives</h2><p>This move is part of a series of initiatives unveiled by the two governments during a Joint Council for Bilateral Cooperation event which was held in Tianjin, China, last week. Among the announced measures is a mutual 30-day visa-free travel arrangement, one of 24 deals signed to strengthen bilateral ties between China and Singapore.</p><p>The Monetary Authority of Singapore (MAS) disclosed in a <a href="https://www.mas.gov.sg/news/media-releases/2023/singapore-and-china-enhance-digital-finance-and-capital-markets-cooperation" rel="noopener noreferrer nofollow">statement</a> that it had collaborated with the Digital Currency Institute of the People’s Bank of China (PBOC) for this initiative. The program aims to facilitate the use of the digital version of the Chinese currency for tourist spending, enhancing convenience for travelers during their overseas trips. While specific details about the scheme were not disclosed, it represents a collaborative effort to promote cross-border transactions using the digital yuan.</p><h2 id="header-1">Internationalizing the digital yuan</h2><p>In its <a href="https://www.scmp.com/tech/policy/article/3244387/china-singapore-let-each-others-tourists-pay-digital-yuan-beijing-seeks-globalise-its-e-cny-currency" rel="noopener noreferrer nofollow">reporting</a> on the announcement, the South China Morning Post (SCMP) pointed to the views of Richard Turrin, an independent financial technology consultant and author of “Cashless: China’s Digital Currency Revolution.” Turrin sees the digital yuan collaboration as a promising opportunity for cross-border retail use. He suggests that starting with small transactions, such as those by tourists, could pave the way for broader applications in trade and other high-value scenarios.</p><p>In an <a href="https://www.scmp.com/comment/opinion/article/3242880/dollar-still-king-how-much-longer" rel="noopener noreferrer nofollow">editorial</a> back in November, the SCMP referred to the birth of the Petro-Yuan, speculating that the era of the Petro-Dollar is coming to an end. “In a global political economy long dominated by the petrodollar, this could be the beginning of a seismic shift,” the editorial stated. The internationalization of the e-CNY will likely be a key aspect of that overall monetary sea change.</p><h2 id="header-2">Over 5 years in development</h2><p>China initiated digital yuan testing in 2019, and although an official launch timetable has not been confirmed, adoption has accelerated recently. Former PBOC governor Yi Gang reported that total e-CNY transactions reached 950 million yuan ($133 million) in June, with a cumulative value of 1.8 trillion yuan compared to 100 billion yuan in August 2022. This indicates a substantial increase in digital yuan transactions.</p><p>The momentum extends beyond mainland China, with Beijing exploring CBDC usage internationally. The mBridge trial, completed last year, involved multiple countries using central bank digital currencies to settle trades, including Hong Kong, Thailand and the United Arab Emirates.</p><p>In June, authorities in China’s resort city of Sanya <a href="https://medium.com/&#64;coinness.gl/china-launches-digital-yuan-atms-in-hainan-resort-city-of-sanya-3d77a7b6baf1" rel="noopener noreferrer nofollow">introduced</a> e-CNY ATMs so that foreign visitors could buy the digital yuan and use it during their time in China. Another <a href="https://medium.com/&#64;coinness.gl/hong-kong-broadens-pilot-program-for-chinas-digital-yuan-3ea0209c88f" rel="noopener noreferrer nofollow">initiative</a> aims to encourage further use of the digital currency within the Chinese autonomous territory of Hong Kong. In July, the Hong Kong arm of the Bank of China <a href="https://medium.com/&#64;coinness.gl/e-cny-payments-enabled-for-hong-kong-visitors-from-mainland-china-4ef714975ce3" rel="noopener noreferrer nofollow">rolled out</a> a digital yuan shopping festival in Hong Kong, allowing visitors to Hong Kong from mainland China to make purchases using the digital yuan.</p>

China and Singapore collaborate on cross-border digital yuan transactions

목차

CoinNess Global

2023년 12월 12일에 게재된 다른 기사

Ethereum Layer 2’s Rise Towards Mass Adoption

Blockchain Life 2024 will gather a record 8000 attendees in Dubai

OverProtocol Announces Open Beta Testnet and Community Incentives for Participation

Trial of ‘Art-themed Altcoin Fraudster’ Underway in South Korea

Elizabeth Warren’s Crypto Bill Draws Interest Amid Checkered Legislative History

China’s Blockchain ID Revolution: RealDID for 1.4 Billion Citizens

무료 뉴스레터에 가입하여 매일 최신 암호화폐 소식을 받아보세요!